VCTs 'good for the economy'

Venture capital trusts (VCTs) aid economic growth through their investments in small businesses, according to Albion Ventures.

The VCT specialist, formerly Close Ventures, says since its first fund was launched in 1996 its investments have led to the creation of 2,000 full-time jobs. This will generate about £16.5m in income tax and national insurance taken on an average salary basis this year. Government coffers will also benefit from corporation tax on the business activities of these growing companies, Albion points out. The Government provides an incentive for retail investors to invest in new shares in VCTs by offering income tax relief on their investment. This has varied over time but currently i...